How to Set Up an SPV in Cyprus (2026 Guide for Foreign Investors)
- Matthew Ivo
- 5 days ago
- 5 min read
Setting up a Special Purpose Vehicle (SPV) in Cyprus is a popular option for international investors seeking tax efficiency, asset protection, and an EU-regulated structure. This guide explains how to register a Cyprus SPV, the required documents, compliance obligations, and the benefits of using a multi-currency SPV account over a traditional bank account.
What is an SPV in Cyprus?
A Special Purpose Vehicle (SPV) in Cyprus is a legally distinct company formed for a narrow, clearly defined function - typically to hold assets, structure investments, manage financing transactions, or isolate specific risks. Most Cyprus SPVs are incorporated as Private Limited Companies (Ltd) under the Cyprus Companies Law (Cap. 113), offering a combination of flexibility, regulatory stability, and tax efficiency.
Why set up an SPV in Cyprus?
Cyprus has become one of Europe’s most attractive jurisdictions for international structuring due to:
1. Favourable tax regime
12.5% corporate tax (one of the lowest in the EU)
Broad double-taxation treaty network
No withholding tax on most dividends paid to non-resident shareholders
Tax-efficient holding, financing and IP structures
2. Strong legal framework
Cyprus uses an English-based common-law system, providing predictability and internationally recognised legal principles.
3. Full EU member state advantages
EU regulatory oversight
Access to the EU’s single market
High investor confidence
4. Flexible corporate structuring
SPVs can be tailored for purposes such as:
Real estate acquisition
Private equity platforms
Securitisation transactions
Intra-group financing
Asset and receivables holding
IP ownership and licensing
5. Asset protection and ring-fencing
The SPV’s liabilities are restricted to the assets it holds, enhancing investor protection.
Why Cyprus is a leading jurisdiction for SPVs in 2026
Cyprus continues to attract foreign investors seeking efficient international structuring. Demand is strong in:
Key sectors using Cyprus SPVs
Sector | Common SPV Uses |
Real Estate & Property Investment | Holding companies, acquisition SPVs, EUR rental income structures |
Private Equity & Venture Capital | Investment platforms, co-investment vehicles and cross-border financing |
Corporate Treasury & Financing | Intra-group loans, bond issuance vehicles |
Securitisation & Structured Finance | Loan receivables SPVs, asset-backed structures |
Technology & Intellectual Property | Licensing, royalty income, IP ownership |
How to set up an SPV in Cyprus: step-by-step guide (2026)
Step 1: Choose the SPV structure
Most investors form a Cyprus Private Limited Company (Ltd) due to:
low minimum share capital
flexible corporate structure
simple administration
wide acceptance by international banks and institutions
Step 2: Appoint directors and company secretary
Requirements:
At least one director
A company secretary
A registered office in Cyprus (mandatory)
Tip: A Cyprus-resident director strengthens tax residency and substance.
Step 3: Define the SPV’s purpose
Your Memorandum & Articles of Association must clearly define permitted activities, such as:
holding investments
acquiring property
issuing debt instruments
managing receivables
Step 4: Establish tax residency and substance
To benefit from Cyprus tax treaties:
Board meetings should occur in Cyprus
Management and control must be exercised locally
A Cyprus-resident director is recommended
Proper accounting and record-keeping must be maintained in Cyprus
Step 5: Register the SPV with the registrar of companies
The incorporation process includes:
Name approval
Submission of M&A
Filing director/shareholder details
Issuance of corporate certificates
Optional registrations:
Tax Identification Code (TIC)
VAT registration (if conducting taxable activities)
Step 6: Set up operational infrastructure
Typical requirements include:
Accounting and audit arrangements
SPV bank or multi-currency payment accounts
Nominee or trustee services (optional)
Legal and corporate administration services
Documents required to register an SPV in Cyprus (for non-residents)
1. Personal identity documents
For all directors, shareholders, and UBOs:
Certified passport copy
Proof of address (utility bill, bank statement—issued within 3 months)
2. Corporate structure details
Provide:
Director and shareholder details
Company secretary information
UBO (Ultimate Beneficial Owner) disclosures
Registered office details
3. Formation documents
Prepared by your service provider:
Memorandum & Articles of Association
HE forms (official incorporation documents)
Company name application
4. Tax and substance documentation
If the SPV requires Cypriot tax residency:
Evidence of management and control
Board meeting minutes
Local directorship arrangements
5. Post-incorporation documents
You will receive:
Certificate of Incorporation
Share certificates
Statutory registers
First board resolutions
6. Additional documents (activity-dependent)
Loan agreements for financing SPVs
Property contracts for real estate SPVs
Investor agreements for fund structures
Compliance requirements for Cyprus SPVs (2026)
Cyprus SPVs must maintain strong regulatory compliance to protect tax status and corporate standing.
Requirements include:
Annual audited financial statements
Corporate tax declarations
Transfer pricing documentation for financing structures
Maintenance of statutory records
Local substance requirements (if using treaties)
UBO Register filings
Non-compliance can result in penalties, loss of tax residency status, or restricted banking access.
SPV accounts vs traditional bank accounts in Cyprus
Many investors begin with standard Cyprus bank accounts but later switch to specialised SPV payment accounts for greater flexibility.
Feature | Traditional Cyprus bank account | |
Multi-currency support | Limited | Hold 50+ currencies |
High-value global payments | Slow or restricted | Fast payments to 160+ countries |
Fund segregation | One account for multiple assets | Separate accounts per asset |
Reporting | Manual tracking | Automated reconciliation |
Support | Standard service | Dedicated Relationship Manager |
International SPV accounts are ideal for:
global investors
fund managers
cross-border financing deals
Why Interpolitan money is a better option than a traditional bank
Interpolitan Money offers SPV account solutions tailored to international investors:
Hold, convert and manage 50+ currencies in one place
Send and receive funds in 160+ countries
Create segregated sub-accounts for individual assets
Access expert support via a dedicated Relationship Manager
Use automated cash-flow and reconciliation tools
Whether you’re structuring an investment, funding acquisitions, or holding international assets, Interpolitan Money offers simplicity and efficiency that traditional banks cannot match.
FAQ: SPV formation in Cyprus 2026
What is an SPV in Cyprus used for?
A Cyprus SPV is typically used for asset holding, real estate acquisition, private equity structures, intra-group financing, or isolating investment risk.
Can a foreign investor own 100% of a Cyprus SPV?
Yes. Cyprus allows full foreign ownership, making it ideal for non-resident investors.
How long does it take to set up an SPV in Cyprus?
Incorporation usually takes 5–10 working days, depending on document submission and name approval.
Do I need a Cyprus-resident director for an SPV?
It is not mandatory, but strongly recommended to support Cyprus tax residency and substance.
Are Cyprus SPVs tax efficient?
Yes. Cyprus offers a low corporate tax rate, extensive treaty network and no withholding tax on most outbound dividends.
Is a Cyprus SPV suitable for real estate investment?
Absolutely. SPVs are commonly used to acquire and manage Cyprus or international property.
What are the annual compliance requirements?
Cyprus SPVs must file audited accounts, annual returns, tax filings and maintain statutory registers.
Disclaimer: The article should not be relied upon as company-formation, jurisdictional, or tax advice. Interpolitan Money does not provide specialist guidance in these areas. Always consult an appropriate professional before making decisions.
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